Question Six a. A firm of Charted Accountants has rendered taxation and accounting services to your company on terms l/30 net 60, which means your company may deduct 1% off the invoiced amount if it pays within 30 days, else the full amount of the invoice is due by the 60th day. What is the annual interest rate of the discount terms to your company? 5 marks b. Kaki-Pee ltd has provided you with the following data regarding next year's budget that has just been presented to the board by the Financial Controller of the company. Basic data Budgeted average amount to be outstanding GH 340,000 180,000 150,000 300,000 (211200) 631500 Stock: Raw Materials Work-in-progress Finished goods Debtors Creditors Budgeted average working capital The flowing daly averages are available Sales Cost of sales Purchases You are required to compute the working capital cycle based on the above data and advice management on each stage of the cycle. GH 4,620 3,600 1,920 10 marks